Americas Market Update 17 Aug

Fuel prices across the Americas have recorded gains, while bunkering operations could be suspended in Zona Comun due to bad weather.

IMAGE: Cranes loading a container ship at a marine terminal in New York. Getty Images

Changes on the day from Friday, to 08.00 CDT (13.00 GMT) today:

• VLSFO prices up in Zona Comun, Balboa ($18/mt), New York ($17/mt), Houston ($16/mt) and Los Angeles ($14/mt)
• LSMGO prices up in Los Angeles ($66/mt), New York ($43/mt), Zona Comun ($41/mt), Houston ($38/mt) and Balboa ($19/mt)
• HSFO prices up in Houston ($25/mt), Balboa ($15/mt), Los Angeles ($14/mt) and New York ($4/mt)

New York's LSMGO price has increased after a higher-priced, 150-500 mt stem, fixed over the weekend at $1,296/mt, put upward pressure on the benchmark.

Bunker demand in New York is strong, and availability is decent for LSMGO and VLSFO deliveries, with lead times of 4-7 days. HSFO availability is expected to tighten slightly this week and requires at least seven days' notice, a trader said.

In Argentina's Zona Comun, bunkering operations are expected to be suspended due to high wind gusts at the anchorage.

The suspension could result in delays to bunker deliveries, a source said. Current lead times for VLSFO and LSMGO are 5-8 days this week.

Brent

The front-month ICE Brent contract has gained by $2.13/bbl on the day from Friday, to trade at $89.19/bbl at 08.00 CDT (13.00 GMT) today.

Upward pressure:

Brent crude’s price continues to trade close to the $90/bbl mark, as the conflict between Washington and Tehran deepens.

The 60-day peace accord signed on 17 June, setting a deadline for ending the war with Iran and reaching a permanent deal on Tehran’s nuclear program, is set to expire today.

Washington and Tehran are further apart than they were two months ago, according to market analysts.

Over the weekend, two separate commercial tankers, attempting to transit the Strait of Hormuz, came under drone attacks. Both vessels were subject to minor damages.

“Prices remained supported by renewed fighting in Lebanon and attacks on vessels in the Strait of Hormuz, raising concerns over regional supply disruptions and complicating prospects for a US-Iran deal,” two analysts from ING Bank noted.

Downward pressure:

Brent crude’s price has felt some downward pressure after Baker Hughes reported a rise in US crude oil rig activity.

The total number of rigs drilling for crude oil in the US increased by one over the week to 455 units last week.

The US oil rig count is seen as an indicator of future oil production. It reflects how much oil drilling activity is happening or expected to happen in the shale sector.

By Gautamee Hazarika and Aparupa Mazumder

Please get in touch with comments or additional info to news@engine.online